In 2024, it’s more important than ever for the finance industry to bolster its defences, according to Hicomply, a fast-growing tech platform offering information security management solutions.
The fintech industry has grown at a rapid rate over the last decade or so. From expanding cryptocurrency horizons to accelerating transactions and global economy accessibility, fintech is an exciting and dynamic field to work in. That being said, organisations operating in the space do need to be aware of the threats and risks at play.
Handling sensitive data like bank details and transactions is par for the course in fintech, so having the right defences in place is vital.
Gone phishing: the rising risks to fintech
Data security breaches are all too common within the financial technology sector, due to the high value of the information stored. This vulnerability affects companies of all sizes, including industry giants as well as challenger brands looking to scale-up quickly and build infrastructure later.
The fintech industry faces particular challenges when it comes to phishing attacks, which surged by 22% during the first six months of 2021. Although phishing typically exploits the trust of well-intentioned employees, the threat of insider actions cannot be overlooked. In the fintech sphere, there have been instances where staff or third-party service providers have intentionally abused their privileges for personal profit.
Protecting the pennies: compliance in fintech
Adhering to compliance standards sets a universal language, demonstrating a company’s dedication to cybersecurity across various sectors. By attaining key certifications like PCI DSS and ISO 27001, fintech companies not only foster trust but also mitigate the damage of financial penalties in the event of a breach.
Information security
At the heart of fintech compliance lies the protection of sensitive customer information. This involves the encryption of personal details such as sign-in details, financial dealings, and account identifiers to avert any security breaches.
Auditing
Maintaining comprehensive audit trails also plays a crucial role in documenting fintech Information Security Management System (ISMS) activities. These logs serve as vital records for scrutinizing operations, guiding decisions on enhancing data security measures in the future.
Access controls
Implementing stringent access control measures introduces an additional safeguard by limiting data access in alignment with an individual’s association with the company.
How to achieve fintech compliance
Compliance should be woven into the fabric of any fintech organisation’s daily operations. Factors such as monitoring network endpoints to detect threats early on, restricting accessto limit the damage from compromised accounts, and developing secure codes to prevent flaws going undetected are all vital best practices.
What’s more, businesses can also introduce password policies to strengthen security further. 86% of data breaches are caused by weak passwords, according to Verizon, so introducing more robust measures like complex requirements, auto-lock out, and expiration periods can make all the difference.
Effective cybersecurity training is also essential, as rigorous data protection is an organisation-wide effort. Human error is a common gateway for cybercriminals, so training on elements like password creation, phishing identification, and handling sensitive data can help protect fintech organisations.
Final thoughts
As the fintech industry continues to evolve, it’s vital that companies in the industry take the necessary steps to protect their assets and their clients. Data protection is a non-negotiable part of any fintech organisation, and must be treated as such.
By implementing compliance best practices, fintech companies can avoid feeling powerless in the face of an ever-evolving threat landscape, and Hicomply is here to help you achieve compliance with ease.
